Does the Monicals Pizza franchise agreement require the franchisee to confirm that signing the agreement does not violate any existing agreements?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the right to require Franchisee and any holder of a legal or beneficial interest in Franchisee (and any member of their immediate families or households), and any officer, director, executive, manager or member of the professional staff and all employees of Franchisee to execute a nondisclosure and non-competition agreement, in a form acceptable to Franchisor and the same as or substantially similar to the Nondisclosure and Non-Competition Agreement attached as Exhibit 2 ("Nondisclosure and Non-Competition Agreement"), upon execution of this Agreement or prior to each such person's affiliation with Franchisee. Upon Franchisor's request, Franchisee shall provide Franchisor with copies of all nondisclosure and non-competition agreements signed pursuant to this Section. Such agreements shall remain on file at the offices of Franchisee and are subject to audit or review as otherwise set forth herein. Franchisor shall be a third party beneficiary with the right to enforce covenants contained in such agreements.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
Based on the 2025 Monicals Pizza Franchise Disclosure Document, there is no explicit requirement for a franchisee to confirm that signing the agreement does not violate any existing agreements. However, the document does state that the franchisee may be required to sign a non-disclosure and non-competition agreement. This agreement would be in place to protect Monicals Pizza's trade secrets and confidential information.
Item 7.4 of the FDD states that Monicals Pizza has the right to require the franchisee, any holder of legal or beneficial interest, their immediate families, officers, directors, executives, managers, professional staff, and all employees to execute a nondisclosure and non-competition agreement. This agreement must be in a form acceptable to Monicals Pizza and similar to the one attached as Exhibit 2. This agreement must be signed upon execution of the Franchise Agreement or before the person's affiliation with the franchisee.
Monicals Pizza, as a third-party beneficiary, has the right to enforce the covenants contained within these agreements. Franchisees are required to provide copies of all signed non-disclosure and non-competition agreements to Monicals Pizza upon request. These agreements must be kept on file at the franchisee's office and are subject to audit or review.